Cyclacel Pharmaceuticals, Inc. CYCLACEL COMPLETES PREVIOUSLY ANNOUNCED REGISTERED DIRECT OFFERING Berkeley Heights, NJ

Cyclacel Pharmaceuticals, Inc.

CYCLACEL COMPLETES PREVIOUSLY ANNOUNCED REGISTERED DIRECT OFFERING

Berkeley Heights, NJ, January 25, 2010 Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ: CYCCP; Cyclacel or the

Company ) announced today that it completed its previously announced registered direct offering through the sale of

shares of its common stock and warrants for gross proceeds of $5.9 million, before deducting placement agent fees and

offering expenses, in a registered direct offering with select institutional investors. The offer included the sale

and issuance of 2.35 million units, each unit consisting of one share of the Company s common stock and a warrant to

purchase 0.25 shares of common stock, at a purchase price of $2.50 per unit. The warrants, which represent the right

to acquire an aggregate of 705,000 shares of common stock at an exercise price of $2.85 per share, have a five-year

term from the date of issuance and are exercisable beginning six months after the date of issuance.

The units were offered and sold pursuant to a prospectus supplement dated January 21, 2010 and an accompanying

prospectus dated February 12, 2007, pursuant to the Company s effective shelf registration statement previously filed

with the Securities and Exchange Commission.

Roth Capital Partners, LLC served as the sole placement agent for the offering. Merriman Curhan Ford served as

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any

sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the

registration or qualification under the securities laws of any such jurisdiction. Any offer will be made only by means

of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. Copies of

the final prospectus supplement together with the accompanying prospectus can be obtained at the SEC s website at

http://www.sec.gov or from Roth Capital Partners, LLC at 24 Corporate Plaza, Newport Beach, CA 92660.

About Cyclacel Pharmaceuticals, Inc.

Cyclacel is a biopharmaceutical company dedicated to the discovery, development and commercialization of novel,

mechanism-targeted drugs to treat human cancers and other serious disorders. Three orally-available Cyclacel drugs are

in clinical development. Sapacitabine (CYC682), a cell cycle modulating nucleoside analog, is in Phase 2 studies for

the treatment of acute myeloid leukemia in the elderly, myelodysplastic syndromes and lung cancer. The Company plans

to submit a Special Protocol Assessment (SPA) request for a pivotal study with sapacitabine during the first quarter of

2010. Seliciclib (CYC202 or R-roscovitine), a CDK (cyclin dependent kinase) inhibitor, is in Phase 2 studies for the

treatment of lung cancer and nasopharyngeal cancer and in a Phase 1 trial in combination with sapacitabine. CYC116, an

Aurora kinase and VEGFR2 inhibitor, is in a Phase 1 trial in patients with solid tumors. Cyclacel s ALIGN

Pharmaceuticals subsidiary markets directly in the U.S. Xclair Cream for radiation dermatitis, Numoisyn Liquid and

Numoisyn Lozenges for xerostomia. Cyclacel s strategy is to build a diversified biopharmaceutical business focused in

hematology and oncology based on a portfolio of commercial products and a development pipeline of novel drug

candidates. Please visit www.cyclacel.com for additional information.

www.cyclacel.com info@cyclacel.com

This news release contains certain forward-looking statements that involve risks and uncertainties that could cause

actual results to be materially different from historical results or from any future results expressed or implied by

such forward-looking statements. Such forward-looking statements include statements regarding, among other things, the

efficacy, safety, and intended utilization of Cyclacel s product candidates, the conduct and results of future clinical

trials, plans regarding regulatory filings, future research and clinical trials and plans regarding partnering activities. Factors that may cause actual results to

differ materially include the risk that product candidates that appeared promising in early research and clinical

trials do not demonstrate safety and/or efficacy in larger-scale or later clinical trials, the risk that Cyclacel will

not obtain approval to market its products, the risks associated with reliance on outside financing to meet capital

requirements, and the risks associated with reliance on collaborative partners for further clinical trials, development

and commercialization of product candidates. You are urged to consider statements that include the words may, will,

would, could, should, believes, estimates, projects, potential, expects, plans, anticipates,

intends, continues, forecast, designed, goal, or the negative of those words or other comparable words to be

uncertain and forward-looking. These factors and others are more fully discussed under Risk Factors in the Annual

Report on Form 10-K for the year ended December 31, 2008, as supplemented by the interim quarterly reports, filed with

Contacts for Cyclacel Pharmaceuticals, Inc.

Corey Sohmer, (908) 517-7330

of Cyclacel Pharmaceuticals, Inc. Numoisyn and Xclair are trademarks of Sinclair Pharma plc.

SOURCE: Cyclacel Pharmaceuticals, Inc.